She is a puppy foster carer with Hunter Animal Rescue, a non-profit organisation which has saved 600 dogs and cats from being euthanised at pounds in the past year.

But hundreds of other pets in the Hunter and 63,000 in NSW each year are not so lucky, falling victim to the increasing problem of an oversupply of pets.

Lake Macquarie MP and Mayor Greg Piper has joined a campaign calling for a NSW Government inquiry into the pet industry.

"The way our society treats its companion animals is not good enough. Too many animals are bred without good reason and consequently killed," Cr Piper said.

He said ratepayers paid a high price to "support the status quo of the pet industry". Lake Macquarie City Council paid the RSPCA $120,000 a year to take pets that council rangers picked up, he said.

From July 2008 to February 2009, the council took 465 dogs and 204 cats to the RSPCA's Rutherford base.

Sydney MP and Lord Mayor Clover Moore has a bill before the NSW Parliament that aims to ban the sale of dogs and cats in shops and markets and limit advertising to prevent backyard breeders and puppy farmers profiting from cruel breeding techniques.

A key aim is to stop impulse buying in pet shops.

Ms Hanrahan, who is caring for two puppies saved from a Hunter pound, supports the bill.

"So many poor dogs are euthanised," she said.

Nikki Vigo, who co-owns Allans Pet Shoppe at Westfield Kotara, said she supported some aspects of the bill, but not a ban on pet shops.

"We've been in business in Newcastle for 50 years and we take good care of our animals," she said.

"We only buy from breeders or people with a very good reputation. You do hear of the puppy farms and we don't have anything to do with them."

Campaigners are targeting Premier Nathan Rees because the Government has not shown support for the bill. A vote is expected on the bill in September.